Ireland’s economic freedom score falls for the second year

ECONOMIC freedom in Ireland is on the decline the Economic Freedom of the World 2003 report states and it is getting worse according to the Irish contributors to the study.

The Irish based Open Republic Institute (OPI) compiled the Irish data for the worldwide study and OPI director Paul MacDonnell believes the level of economic freedom in Ireland has deteriorated since the base figures for the 2003 report were compiled, relying 2001 data.

Ireland’s economic freedom score has fallen for the second year in a row but the country still ranks as the seventh most economically free in the world.

Ireland’s economic freedom ranking fell from fifth place in 2001 with a score of 8.5 to seventh place this year on a score of 8.0.

Mr O’Donnell said rising levels of indirect taxation imposed in the last budget has most likely pushed Ireland down the league at a time when other competing economies are improving their relative economic freedoms.

The index shows gains in economic freedom across the world. Director of the Open Republic Institute Constantin Gurdgiev, said the reasons for Ireland’s decline include:

The expanding burden of public expenditure, up by €5.2bn last year.

Increasing taxes, a 20% fall in the index in one year alone.

Increasing regulation of business, a 7% fall in the score.

Increasing legal costs of complying with regulation, a 7% fall in the score.

Rising cost of importing, a 5% fall in the score

“It’s becoming clear that the state is increasing taxes, expanding its payroll and failing to remove regulatory barriers to enterprise,” added Mr Gurdgiev.

Hong Kong retains the highest economic freedom rating, followed by Singapore, the United States, New Zealand, and the United Kingdom.